KARACHI: The rupee appreciated somewhat versus the US dollar in the interbank market on Tuesday as a result of the Saudi package news.
The rupee gained 48 paisa versus the US dollar, finishing at Rs175.72.
A day earlier, the local unit plunged to an all-time low of Rs176.20 against the US currency on the back of high import payments and the country’s dwindling foreign currency reserves.
However, the news that the State Bank of Pakistan (SBP) and Saudi Fund for Development (SFD) have signed a deposit agreement for the much-awaited funds worth $3 billion eased the pressure from the currency.
The rupee has maintained the downtrend for the past six months. It has lost 15.4% (or Rs23.45) to date, compared to the 22-month high of Rs152.27 recorded on May 14.
With a fresh increase of 0.27%, the rupee has depreciated by 11.53% (or Rs18.18) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
Tahir Abbas, the Head of Research at Arif Habib Limited, previously forecasted that the current account deficit for November would be over $1.5 billion, with imports “staying at historic high levels.”
The currency is projected to trade in a band of Rs175-176 against the greenback over the week, according to Abbas.
